10 Factors Affecting Entrepreneurship Development In Nigeria

10 Factors Affecting Entrepreneurship Development In Nigeria
An entrepreneur can is any person, whether a male or female who sets up a business or businesses, taking on the financial risks in the hope of profit. 
Entrepreneurship  is generally influenced by four factors which are culture, economic development, education and technological development. Entrepreneurs in Nigeria include the small and medium business enterprises and generally, the entrepreneurs in any country have play great role in the development of the nation's economy.
In a developing country like Nigeria, there are many young people with high entrepreneurial dreams but majority of them experience setbacks which might result to the delay, shrink or killing of their dreams.
We'll look at some of the factors that are affecting entrepreneurship in Nigeria and how to curtail them.

10 Key Factors Affecting Entrepreneurship In Nigeria

- Inaccessibility to capital

This is the major issue that is faced by Nigerian and African entrepreneurs in general. The more capital a potential entrepreneur is exposed to, the higher the chances survival chances of the business. 
If banks and other organisations can be able to give out loans to entrepreneurs, the issue of lack of capital can be curtailed in a significant manner. Another issue in this is that many business owners avoid approaching banks for loans because of the exploiting rates the banks normally charge at the end of the whole transaction.
Financial organisations are now taking  their customers' low knowledge-bases as a way of enriching themselves thereby eroding confidence in banking relationships.
As long as these issues continue to prevail, start-up entrepreneurs and small business owners must have to focus on high-defined business activities that have the potential of generating immediate profits for their businesses.

- Lack of Management and Organisational Skills

Before proceeding into any business, study the environment and know your potential buyers. Also know what and where the business will be in a few years and whether you have the required skills to keep it running till then.
Some people venture into businesses without studying the secrets other successful people used in breaking through. Every business has secrets and it's left over to the owners to discover them.
This issue can be tackled by the provision managerial and technical training to young people through various training institutions, schools, industries, and business centres.

- Inability of Entrepreneurs to Form Partnerships

No man is an island, we all need each other to survive even in the business world. A partnership is an arrangement where two or more parties, known as partners, agree to cooperate to advance their mutual interests. Partnership may involve individuals, interest-based organizations, businesses, schools, governments or even combinations.
Many Nigerian business owners see it as a hard task to partner or create collaborative engagements with other business owners without knowing that these collaborations can strengthen the future of their businesses.

- Inability of Entrepreneurs to Identify Potentially Viable Project

Another problem that is facing entrepreneurship development in Nigeria is the issue of identifying the capable of a business to work successfully. Many entrepreneurs are faced with the issue of what to produce, where to locate the business, the target market, where to get the raw materials and more.
However, this issue can be curtailed when the entrepreneurs conduct proper market researches before embarking on a business venture. The most important thing is knowing your customers' choices, afterall customers are always right.

- How to Market their Products and Services

What is the point of producing an item when you can't get enough people to purchase it? The sequence for every business to run successfully are as follows:
- Production of goods
- Selling of goods
- Establishment of brand reputation
- Improvement of product
The final stage comes when you starting getting feedback from people on how they felt using your product. We have written an article on how you can advertise your products for free in Nigeria and it'll be great if you check it out.
If you render services to people, finding guidance on what will get funded or how to scale the business might be relatively hard, this makes it hard for most business that render services to find investors because they don't have physical products to showcase. Therefore, it's very essential to have a good business management, marketing strategies and development.

- How to Hire the Right Employees

Issue of getting the best employees to hire for a job is also among the challenges facing entrepreneurship in Nigeria. Some businesses have issues hiring the best people for different roles, building strong production teams and also for the implementation of good customer service systems.
A happy customer will always return whenever he or she needs the services no matter the cost. Hiring the wrong employees will lead to the organisation losing revenues both directly and indirectly.
Today, getting the best employees doesn't end in certificates, it requires checking the skills and previous working experiences.
The best employees will always have a positive impact in the organisation.

- Lack of Government Protection and Incentives

Many Nigerian entrepreneurs are exposed to economic predators because of the lack of the required government supplied incentives and protection. Even when these incentives are provided, cumbersome bureaucratic procedures like getting the license approved and getting of loans are usually faced.
Also, some regulations made by the government create unnecessary sentiments and market distortions that are not favourable to entrepreneurs.

- Multiple and Exploiting levies

Many business owners face the issue of getting taxed heavily by the regulating bodies and this has the risk of forcing them out of business. This is bad especially in a case whereby the money gotten from the tax is not used for the development of the nation. For example, an organization that pays taxes and still have to pay for diesel to keep their power running instead of the government supplying the organization with the electrical power required for its running.
Another scenario is in the market places, touts often task people money for unnecessary things not considering the profits the business owners made in the day.

- Inadequate Technical and Technological Infrastructure

In this modern era, for a business to scale above its competitors, it must make use of improved tools. Some issues that business owners experience include: high cost of transportation, lack of electricity, inefficient health care systems, poor road networks and lack of water supply to enhance production.
In the developed countries, these issues are controlled by the government from the taxes paid by the companies but in many African countries, the case is quite different. Having the best infrastructural facilities can help a business in a great way.
Also, having good security facilities like CCTV cameras, internet facilities and business arena controls. These issue can be curtailed by the provision of good amenities by the government agencies, institutions, individuals and business organizations.

- High Level of Illiteracy

A good percentage of Nigerian entrepreneurs lack the knowledge of modern business strategies because of not being exposed to them in school. Many Nigerians are of the motive that education doesn't matter so far you are rich forgetting that many there are also successful business gurus.

In summary, the Nigerian business and entrepreneurial world is still untapped and there are still great chances of success. The world is advancing in technology and Africans should hop into the band-wagon.
The different government agencies, individuals, financial institutions, and companies can collaborate to make the Africa a better place.
It's our own!
Next Post »